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HomeMy WebLinkAbout07-605 PUNDTA. Leonard Pundt 7324 Montour Street Philadelphia, PA 19111 -3608 Dear Mr. Pundt: ADVICE OF COUNSEL December 31, 2007 07 -605 This responds to your faxed transmission received November 15, 2007, by which you requested advice from the State Ethics Commission. Issue: Whether as a Management Analyst 2 with the Commonwealth of Pennsylvania, Department of Transportation ( "PennDOT "), you would be considered a "public employee" subject to the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq., and the Regulations of the State Ethics Commission, and upon leaving Commonwealth employment, the restrictions of Section 1103(g) of the Ethics Act pertaining to former public officials /public employees. Facts: Since you began service with the Commonwealth of Pennsylvania in October 2000, you have been employed by PennDOT as a Management Analyst 2 in Engineering District 6 -0 ( "District 6 -0'). You have submitted a copy of your position description, which is incorporated herein by reference. A copy of the job classification specifications for your position (job code 01020) has also been obtained and is incorporated herein by reference. Per your official PennDOT position description, you serve as the Quality Improvement Coordinator for District 6 -0. Your duties and responsibilities include the following: • Improving the efficiency and effectiveness of PennDOT's core business (maintenance and construction projects) by, inter alia, facilitating team meetings, conducting research, determining benchmarks, serving on communication committees and teams, participating in internal audits, and assisting with problem resolution following an audit; • Identifying benefits from ideas and promoting them statewide through, inter alia, meeting with individuals and teams in the counties and assisting with or performing benefit /cost analysis; • Functioning as co- coordinator of the District Business Plan by gathering data, conducting analysis, and developing charts; Pundt, 07 -605 December 31, 2007 Page 2 • Recommending and implementing new initiatives, and reorganizing and redesigning existing functions to eliminate unproductive, inefficient or redundant operations; • Serving as a member of the District's Strategic Management Committee ( "SMC ") and performing the activities to fulfill the requirements identified for members of the SMC in the District's Strategic Environmental Management Program ( "SEMP ") Manual for Sound Environmental Practices; • Fulfilling environmental management requirements in environmental training programs; • Implementing the SEMP business plan objectives; • Completing SEMP stockpile "QA's" as directed; • Coordinating the administration of the Customer Care Center Program in District 6 -0; and • Participating in program formulations with ADE for Services. Position description, at 1 -2. You state that the audits referenced in the job duties listed above are not "typical" audits but rather are a type of quality assurance evaluation ( "QA ") performed on PennDOT County Maintenance District stockpiles. As the SEMP Coordinator, you arrange for, monitor, and sometimes participate in the quality assurance evaluations in support of the District 6 -0 SEMP. Per the job classification specifications under job code 01020, a Management Analyst 2: • Provides journey -level technical analysis work and makes recommendations in areas such as work methods and procedures, organizational structures, administrative issuances, forms, or space and facilities; • Interviews employees and supervisors in operational or program units, conducts on -site inspections, and negotiates for approval of recommendations; • Evaluates work methods and procedures, organizational structures, or inventory systems in order to improve productivity, suggests further or initial automation, or suggests changes in agency policy, procedures, or management practices; • Evaluates requests for office equipment or space and facility utilization in order to improve productivity, suggest initial /further automation, or suggest change in space or facility use; • Reviews and analyzes administrative issuances, develops or revises directives or manual issuances and determines their effect on departmental policies, priorities, or procedures, and coordinates internal or external review, printing, and distribution; • Conducts studies of managerial functions, obtains and analyzes facts about departmental procedures and practices, and develops conclusions and recommendations for improvements; Pundt, 07 -605 December 31, 2007 Page 3 • Leads other management analysts in studies, makes work assignments and sets priorities, monitors progress, and synthesizes study findings into a comprehensive report; • Gives technical advice to departmental staff, commercial vendors, or others; and • Provides for and assists in the training of personnel, and prepares and revises procedural manuals and other instructional materials. Job classification specifications, at 1 -2. You state that the position of Management Analyst 2 is a full -time, non - supervisory, permanent civil service position. You further state that as a Management Analyst 2, you do not set policy or provide advice with regard to the award of contracts to consultants or contractors. You also state that you are not required to file Statements of Financial Interests. You are considering leaving state employment and accepting a full -time position with McCormick Taylor, an engineering and environmental consulting firm that provides services to PennDOT, the Pennsylvania Turnpike Commission, local municipalities, other states, and private companies. You state that your job responsibilities with McCormick Taylor might include assisting PennDOT organizations (bureaus, engineering districts, and the like) with their Continuity of Operations ( "COOP ") programs, including providing training and managing exercises of such organizations' COOP programs. You state that you might also provide public involvement and communication support for various PennDOT projects for which McCormick Taylor has been retained as an independent contractor or consultant. You pose the following two questions: 1. Whether, as a Management Analyst 2 with PennDOT, you would be considered a "public employee" subject to the Ethics Act; and 2. Whether and to what extent the restrictions of the Ethics Act would be applicable to you. Discussion: It is initially noted that pursuant to Sections 1107(10) and 1107(11) of the Ethics Act, 65 Pa.C.S. §§ 1107(10), (11), advisories are issued to the requester based upon the facts that the requester has submitted. In issuing the advisory based upon the facts that the requester has submitted, the Commission does not engage in an independent investigation of the facts, nor does it speculate as to facts that have not been submitted. It is the burden of the requester to truthfully disclose all of the material facts relevant to the inquiry. 65 Pa.C.S. §§ 1107(10), (11). An advisory only affords a defense to the extent the requester has truthfully disclosed all of the material facts. It is further initially noted that, pursuant to Sections 1107(10) and (11) of the Ethics Act, 65 Pa.C.S. §§ 1107(10), (11), an opinion /advice may be given only as to prospective (future) conduct. If the activity in question has already occurred, the Commission may not issue an opinion /advice, but any person may then submit a signed and sworn complaint, which will be investigated by the Commission if there are allegations of Ethics Act violations by a person who is subject to the Ethics Act. To the extent you have inquired as to conduct that has already occurred, such past conduct may not be addressed in the context of an advisory opinion. However, to the extent you have inquired as to future conduct, your inquiry may and shall be addressed. Pundt, 07 -605 December 31, 2007 Page 4 In responding to your inquiries, the threshold question to be addressed is whether, as a Management Analyst 2 with PennDOT, you would be considered a "public employee" subject to the Ethics Act. The Ethics Act defines the term "public employee" as follows: § 1102. Definitions "Public employee." Any individual employed by the Commonwealth or a political subdivision who is responsible for taking or recommending official action of a nonministerial nature with regard to: (1) contracting or procurement; (2) administering or monitoring grants or subsidies; (3) planning or zoning; (4) inspecting, licensing, regulating or auditing any person; or (5) any other activity where the official action has an economic impact of greater than a de minimis nature on the interests of any person. The term shall not include individuals who are employed by this Commonwealth or any political subdivision thereof in teaching as distinguished from administrative duties. 65 Pa. C. S. § 1102. The Regulations of the State Ethics Commission similarly define the term "public employee" and set forth the following additional criteria: (ii) The following criteria will be used, in part, to determine whether an individual is within the definition of "public employe ": (A) The individual normally performs his responsibility in the field without onsite supervision. (B) The individual is the immediate supervisor of a person who normally performs his responsibility in the field without onsite supervision. (C) The individual is the supervisor of a highest level field office. (D) The individual has the authority to make final decisions. (E) The individual has the authority to forward or stop recommendations from being sent to the person or body with the authority to make final decisions. Pundt, 07 -605 December 31, 2007 Page 5 (F) The individual prepares or supervises the preparation of final recommendations. (G) The individual makes final technical recommen- dations. (H) The individual's recommendations or actions are an inherent and recurring part of his position. (1) The individual's recommendations or actions affect organizations other than his own organization. (iii) The term does not include individuals who are employed by the Commonwealth or a political subdivision of the Commonwealth in teaching as distinguished from administrative duties. (iv) Persons in the following positions are generally considered public employes: (A) Executive and special directors or assistants reporting directly to the agency head or governing body. (B) Commonwealth bureau directors, division chiefs or heads of equivalent organization elements and other governmental body department heads. (C) Staff attorneys engaged in representing the department, agency or other governmental bodies. (D) Engineers, managers and secretary - treasurers acting as managers, police chiefs, chief clerks, chief purchasing agents, grant and contract managers, administrative officers, housing and building inspectors, investigators, auditors, sewer enforcement officers and zoning officers in all governmental bodies. (E) Court administrators, assistants for fiscal affairs and deputies for the minor judiciary. (F) School superintendents, assistant superintendents, school business managers and principals. (G) Persons who report directly to heads of executive, legislative and independent agencies, boards and commissions except clerical personnel. (v) Persons in the following positions are generally not considered public employes: (A) City clerks, other clerical staff, road masters, secretaries, police officers, maintenance workers, construction workers, equipment operators and recreation directors. (B) Law clerks, court criers, court reporters, probation officers, security guards and writ servers. Pundt, 07 -605 December 31, 2007 Page 6 (C) School teachers and clerks of the schools. 51 Pa. Code § 11.1. The following terms are relevant to your inquiry and are defined in the Ethics Act as follows: § 1102. Definitions "Ministerial action." An action that a person performs in a prescribed manner in obedience to the mandate of legal authority, without regard to or the exercise of the persons own judgment as to the desirability of the action being taken. "Nonministerial actions." An action in which the person exercises his own judgment as to the desirability of the action taken. 65 Pa.C.S. § 1102. Status as a "public employee" subject to the Ethics Act is determined by an objective test. The objective test applies the Ethics Act's definition of the term "public employee" and the related regulatory criteria to the powers and duties of the position itself. Typically, the powers and duties of the position are established by objective sources that define the position, such as the job description, job classification specifications, and organizational chart. The objective test considers what an individual has the authority to do in a given position based upon these objective sources, rather than the variable functions that the individual may actually perform in the position. See, Philips v. State Ethics Commission, 470 A.2d 659 (Pa. Cmwlth. 1984); Eiben, Opinion 04 -002; Shienvold, Opinion 04 -001; Shearer, Opinion 03 -011. The Commonwealth Court of Pennsylvania has specifically considered and approved the Commission's objective test and has directed that coverage under the Ethics Act be construed broadly and that exclusions under the Ethics Act be construed narrowly. See, Phillips, supra. The first portion of the statutory definition of "public employee" includes individuals with authority to take or recommend official action of a nonministerial nature. 65 Pa.C.S. § 1102. Likewise, the regulatory criteria for determining status as a public employee, as set forth in 51 Pa. Code § 11.1 ( "public employee" (ii)), include not only individuals with authority to make final decisions but also individuals with authority to forward or stop recommendations from being sent to final decision - makers; individuals who prepare or supervise the preparation of final recommendations; individuals who make final technical recommendations; and individuals whose recommendations are an inherent and recurring part of their positions. See, e.q., Reese /Gilliland, Opinion 05- 005. In applying the objective test in the instant matter, the necessary conclusion is that, in your capacity as a Management Analyst 2 for PennDOT, you would be considered a "public employee" subject to the Ethics Act. See, Valunas, Advice 91 -546. In your capacity as a Management Analyst 2, you have the ability to take or recommend official action with respect to subparagraph (5) within the definition of "public employee" as set forth in the Ethics Act, 65 Pa.C.S. § 1102. Specifically, the following duties set forth in the position description and job classification specifications would be sufficient to establish status as a "public employee" subject to the Ethics Act: Pundt, 07 -605 December 31, 2007 Page 7 • Coordinating the administration of the Customer Care Center Program in District 6 -0; • Improving the efficiency and effectiveness of PennDOT's core business (maintenance and construction projects) by, inter alia, determining benchmarks, participating in internal audits, and assisting with problem resolution following an audit; • Identifying benefits from ideas and promoting them statewide through, inter alia, meeting with individuals and teams in the counties and assisting with or performing benefit /cost analysis; • Functioning as co- coordinator of the District Business Plan; • Serving and performing duties as a member of the District's Strategic Management Committee ( "SMC "); • Implementing the SEMP business plan objectives; • Completing SEMP stockpile quality assurance evaluations; • Participating in program formulations with ADE for Services; • Recommending and implementing new initiatives, and reorganizing and redesigning existing functions to eliminate unproductive, inefficient or redundant operations; • Evaluating work methods and procedures, organizational structures, or inventory systems in order to improve productivity, suggesting further or initial automation, or suggesting change in agency policy, procedures, or management practices; • Evaluating requests for office equipment or space and facility utilization in order to improve productivity, suggesting initial /further automation, or suggesting change in space or facility use; and • Developing or revising directives. The foregoing activities would also meet the criteria for determining your status as a public employee under the Regulations of the State Ethics Commission, specifically at 51 Pa. Code § 11.1, "public employee," subparagraphs (i) and (ii). Turning to your second inquiry, you are advised that as a public employee, you would currently be subject to the requirements, restrictions, and prohibitions of the Ethics Act applicable to public employees as set forth in Section 1103 of the Ethics Act, 65 Pa.C.S. § 1103 (pertaining to restricted activities), and Sections 1104 and 1105 of the Ethics Act, 65 Pa.C.S. §§ 1104, 1105 (pertaining to the requirements for filing Statements of Financial Interests). You would also be subject to the following provisions of the Ethics Act that apply to everyone: Sections 1103(b) and 1103(c), 65 Pa.C.S. §§ 1103(b), (c) (providing in part that no person shall offer or give to a public official /public employee anything of monetary value and no public official /public employee shall solicit or accept anything of monetary value based upon the understanding that the vote, official action, or judgment of the public official /public employee would be influenced thereby); Section 1108(k), 65 Pa.C.S. § 1108(k) (governing the confidentiality of information relating to a complaint, preliminary inquiry, investigation, hearing, or petition for reconsideration that is before Pundt, 07 -605 December 31, 2007 Page 8 the State Ethics Commission); and Section 1110, 65 Pa.C.S. § 1110 (pertaining to wrongful use of the Ethics Act). You are further advised that upon termination of your employment with PennDOT, you would become a "former public employee" subject to the restrictions of Section 1103(g) of the Ethics Act, 65 Pa.C.S. § 1103(g). Although you have not posed a specific inquiry with respect to the post - employment restrictions of Section 1103(g), the submitted facts provide that you are considering terminating your employment with PennDOT to accept a position with a private firm that provides services to PennDOT. Therefore, in order to provide a complete response to your second inquiry, this advisory shall set forth the restrictions of Section 1103(g) of the Ethics Act and address the applicability of Section 1103(g) to your proposed private employment scenario. Upon termination of employment with PennDOT, you would become a "former public employee" subject to Section 1103(g) of the Ethics Act. While Section 1103(g) of the Ethics Act does not prohibit a former public official /public employee from accepting a position of employment, it does restrict the former public official /public employee with regard to "representing" a "person" before the governmental body with which he has been associated ": § 1103. Restricted activities (g) Former official or employee. - -No former public official or public employee shall represent a person, with promised or actual compensation, on any matter before the governmental body with which he has been associated for one year after he leaves that body. 65 Pa.C.S. § 1103(g) (Emphasis added). The terms "represent," "person," and "governmental body with which a public official or public employee is or has been associated" are specifically defined in the Ethics Act as follows: 65 Pa.C.S. § 1102. § 1102. Definitions "Represent." To act on behalf of any other person in any activity which includes, but is not limited to, the following: personal appearances, negotiations, lobbying and submitting bid or contract proposals which are signed by or contain the name of a former public official or public employee. "Person." A business, governmental body, individual, corporation, union, association, firm, partnership, committee, club or other organization or group of persons. "Governmental body with which a public official or public employee is or has been associated." The governmental body within State government or a political subdivision by which the public official or employee is or has been employed or to which the public official or employee is or has been appointed or elected and subdivisions and offices within that governmental body. Pundt, 07 -605 December 31, 2007 Page 9 The term "Person" is very broadly defined. It includes, inter alia, corporations and other businesses. It also includes the former public employee himself, Confidential Opinion, 93 -005, as well as a new governmental employer. Ledebur, Opinion 95 -007. The term "representation" is also broadly defined to prohibit acting on behalf of any person in any activity. Examples of prohibited representation include: (1) personal appearances before the former governmental body or bodies; (2) attempts to influence; (3) submission of bid or contract proposals which are signed by or contain the name of the former public official /employee; (4) participating in any matters before the former governmental body as to acting on behalf of a person; and (5) lobbying. Popovich, Opinion 89 -005. Listing one's name as the person who will provide technical assistance on a proposal, document, or bid, if submitted to or reviewed by the former governmental body, constitutes an attempt to influence the former governmental body. Section 1103(g) also generally prohibits the inclusion of the name of a former public official/ public employee on invoices submitted by his new employer to the former governmental body, even though the invoices pertain to a contract that existed prior to termination of public service, Shay, Opinion 91 -012. However, if such a pre - existing contract does not involve the unit where the former public employee worked, the name of the former public employee may appear on routine invoices if required by the regulations of the agency to which the billing is being submitted. Abrams/Webster, Opinion 95 -011. A former public official /public employee may assist in the preparation of any documents presented to his former governmental body. However, the former ublic official /public employee may not be identified on documents submitted to the former governmental body. The former public official /public employee may also counsel any person regarding that person's appearance before his former governmental body. Once again, however, the activity in this respect should not be revealed to the former governmental body. The Ethics Act would not prohibit or preclude making general informational inquiries to the former governmental body to secure information which is available to the general public, but this must not be done in an effort to indirectly influence the former governmental body or to otherwise make known to that body the representation of, or work for the new employer. Section 1103(g) only restricts the former public official /public employee with regard to representation before his former governmental body. The former public official /public employee is not restricted as to representation before other agencies or entities. However, the "governmental body with which a public official /public employee is or has been associated" is not limited to the particular subdivision of the agency or other governmental body where the public official /employee had influence or control but extends to the entire body. See, Legislative Journal of House, 1989 Session, No. 15 at 290, 291; Sirolli, Opinion No. 90 -006; Sharp, Opinion 90- 009 -R. The governmental body with which you would be deemed to have been associated upon termination of public service would be PennDOT in its entirety including, but not limited to, District 6 -0. Therefore, for the first year following termination of your employment with PennDOT, Section 1103(g) of the Ethics Act would apply and restrict "representation" of "persons" before PennDOT. In applying Section 1103(g) of the Ethics Act to your proposed employment scenario, you are advised as follows. Section 1103(g) of the Ethics Act would not prohibit you from accepting a position with McCormick Taylor. However, during the first year following termination of your employment with PennDOT, Section 1103(g) of the Ethics Act would prohibit you from Pundt, 07 -605 December 31, 2007 Page 10 performing any job duties as a McCormick Taylor employee that would involve prohibited representation before PennDOT as set forth above. For example, you are advised that Section 1103(g) of the Ethics Act would restrict you from assisting PennDOT organizations with their COOP programs and providing public involvement and communication support for various PennDOT projects for which McCormick Taylor has been retained as an independent contractor or consultant where engaging in such activity(ies) would involve prohibited representation before PennDOT. Although Section 1103(g) of the Ethics Act would only apply to restrict you from engaging in prohibited "representation" before PennDOT, you are advised that to the extent your prospective private employer would provide services to the Pennsylvania Turnpike Commission, local municipalities, other states, and private companies that would have involvement with PennDOT, you would have to exercise caution to ensure that you would not engage in prohibited representation before PennDOT with respect to such services, such as, for example, through the prohibited inclusion of your name on documents submitted to PennDOT. Based upon the facts that have been submitted, the latter portion of this Advice has addressed the applicability of Section 1103(g) only. It is expressly assumed that there has been no use of authority of office for a private pecuniary benefit as prohibited by Section 1103(a) of the Ethics Act. Lastly, the propriety of the proposed conduct has only been addressed under the Ethics Act; the applicability of any other statute, code, ordinance, regulation or other code of conduct other than the Ethics Act has not been considered in that they do not involve an interpretation of the Ethics Act. Specifically not addressed herein is the applicability of the Governor's Code of Conduct. Conclusion: As a Management Analyst 2 for the Commonwealth of Pennsylvania, Department of Transportation ( "PennDOT "), you would be considered a "public emplo ee" subject to the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1101 et seq. "Ethics Act "). As a public employee, you would currently be subject to the requirements, restrictions, and prohibitions of the Ethics Act applicable to public employees as set forth in the Sections 1103, 1104, and 1105 of the Ethics Act. You would also be subject to Sections 1103(b), 1103 (c), 1108(k), and 1110 of the Ethics Act, which are applicable to everyone. Upon termination of service with PennDOT, you would become a ' former public employee" subject to Section 1103(g) of the Ethics Act. The former governmental body would be PennDOT in its entirety, including but not limited to Engineering District 6 -0. Section 1103(g) of the Ethics Act would restrict you from engaging in any activity that would constitute prohibited representation before PennDOT for one year following termination of Commonwealth employment. The restrictions as to representation outlined above must be followed. The propriety of the proposed conduct has only been addressed under the Ethics Act. Further, should service be terminated, as outlined above, the Ethics Act would require that a Statement of Financial Interests be filed by no later than May 1 of the year after termination of service. Pursuant to Section 1107(11), an Advice is a complete defense in any enforcement proceeding initiated by the Commission, and evidence of good faith conduct in any other civil or criminal proceeding, provided the requester has disclosed truthfully all the material facts and committed the acts complained of in reliance on the Advice given. This letter is a public record and will be made available as such. Pundt, 07 -605 December 31, 2007 Page 11 Finally, if you disagree with this Advice or if you have any reason to challenge same, you may appeal the Advice to the full Commission. A personal appearance before the Commission will be scheduled and a formal Opinion will be issued by the Commission. Any such appeal must be in writing and must be actually received at the Commission within thirty (30) days of the date of this Advice pursuant to 51 Pa. Code § 13.2(h). The appeal may be received at the Commission by hand delivery, United States mail, delivery service, or by FAX transmission (717 - 787 - 0806). Failure to file such an appeal at the Commission within thirty (30) days may result in the dismissal of the appeal. Sincerely, Robin M. Hittie Chief Counsel